Why is implied volatility import to consider for options trading?

Implied volatility is forward-looking and represents the amount of volatility expected in the future.

Implied volatility increases with large price movements in the underlying security. As implied volatility rises, an options contract’s price increases because the expected price range of the underlying security increases.

Should I consider different trade types based on different IV readings?

Different strategies can be used for different IV values. It is a good idea to reference IV when trading options, as it is a big factor in a contract's extrinsic value.

When an automation runs, can I see the actual IV reading and how it compares to my setting?

Yes, you can view the bot log to see the symbol's IV value when the automation ran.

How does IV rank differ from implied volatility?

IV rank calculates current implied volatility compared to a security's value over the past year. Implied volatility is an absolute value, so IV rank puts that absolute value into context by stating the current IV compared to the one year high and low. If todays IV is below any of the end of day closes of the previous year, it will have a negative IVR.  If the current IV is above the any of the previous year's closing IV, it will be above 100 IVR.

Can this criteria be used for both entries and exits?

Yes.